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									        Macquarie Cash Management Trust
        Smart cash management solutions made simple




         The Security of the Macquarie Cash
         Management Trust.
         What you need to know.
          The Macquarie Cash Management Trust (CMT) is a very                  How the CMT is invested to
          secure investment and is structured to consistently deliver
          security, diversification and liquidity.                             ensure liquidity
          Established in 1980, the CMT has held its AAAm rating from           Many clients use the CMT to move large sums of money,
          Standard and Poor’s (S&P) - the highest credit rating available      so liquidity (i.e. the ability for investments to be converted to
          to a cash management trust - for over 20 years. The AAAm             cash quickly) is a key requirement. There are stringent and
          rating indicates that the CMT provides an extremely strong           precise maturity limits to which the CMT adheres. This means
          capacity to maintain principal stability and to limit exposure       that you have easy access to your cash when you need it.
          to principal losses due to credit, market, and/or liquidity risks.
          For more information on Standard and Poor’s visit                    Who looks after my interests?
          www.standardandpoors.com.au                                          When you invest in the CMT your assets are held in trust for
                                                                               you. As such you are not investing directly with Macquarie
          How the CMT invests to manage                                        Bank Limited and your assets are held separately to all other
                                                                               Macquarie assets.
          security and diversification
                                                                               The Responsible Entity (RE) is accountable for the
          The CMT can only invest in government securities or bank
                                                                               management of the CMT and is under a strict duty to act in
          securities and deposits rated as A1 or A1+ by S&P. In addition,
                                                                               the best interests of the CMT unit holders to the exclusion of
          the CMT can only invest 25% into a single A1 rated security.
                                                                               the RE’s own interests. This duty is paramount in all decisions
          The S&P AAAm criteria for cash management trusts requires            made regarding the management of the CMT.
          that the trust demonstrates prudent diversification among
          well-rated organisations. This way, your money is not just
          invested in a range of banks; it’s invested in a range of high
                                                                                Investments in the Macquarie CMT
          quality banks.                                                        and the US credit Crisis
                                                                                Does the CMT have any investments in Lehman Brothers?
                                                                                No. The CMT only invests in Australian Bank and
                                                                                government securities rated as A1 or A1+ by S&P.

                                                                                Does the CMT have any exposure to US banks?
                                                                                There is no direct exposure to US banks. The CMT only
                                                                                invests in Australian Bank and government securities rated
                                                                                as A1 or A1+ by S&P.




                How to contact Macquarie
                1800 808 508
09/08




                www.macquarie.com.au/adviser
        Macquarie Cash Management Trust
        Smart cash management solutions made simple




         CMT - Frequently Asked questions
          Macquarie CMT – Essential information                             which the CMT may invest. Any exposures are monitored
                                                                            on a daily basis by the credit team.
          Is the CMT a bank account?
                                                                            Who is Standard and Poor’s (S&P)?
          No. It is a trust.
                                                                            S&P is the world’s foremost provider of independent credit
          What is a trust?                                                  ratings, indices, risk evaluations, investment research, and
                                                                            data. S&P has been rating money market funds world-wide
          The key difference between a traditional transaction bank         for 20 years and is the leading rating agency in this sector.
          account and a trust, such as the Macquarie CMT, is the
          legal structure. As a trust, the CMT is governed by a             S&P ratings give you:
          Constitution. This means that rather than having your funds       ■■   An independent opinion of the risks that could affect
          placed directly on the Macquarie Bank Limited balance sheet,           stability of principal,
          they are invested in line with the CMT constitution. (More
                                                                            ■■   A robust methodology focused on factors that affect the
          information on the CMT constitution is provided below.)
                                                                                 fund’s net asset value, including credit, counterparty,
          Who is responsible for the trust?                                      interest rate and liquidity risks,

          Macquarie Investment Management Limited (MIML) is the             ■■   Weekly surveillance of the fund’s holdings to ensure the
          Responsible Entity. MIML is one of Australia’s most successful         integrity of the rating, and
          fund managers, managing more than $54 billion for over            ■■   An easily understood rating scale.
          590,000 investors (as at 31 March 2008).
                                                                            For more information on Standard and Poor’s visit
                                                                            www.standardandpoors.com.au
          The CMT investment style
          and structure                                                     What is the AAAm rating?
                                                                            The AAAm criteria is highest rating available to a cash
          Who decides what the CMT will invest in?                          management trust. The rating structure is below.
          The investment decisions of the CMT are governed by the
          CMT constitution.                                                 Principal Stability Ratings Scale

          In addition, in order to maintain the S&P AAAm rating (the                    Fund provides extremely strong capacity to maintain
          highest rating available to a cash management trust), the          AAAm       principal stability and to limit exposure to principal losses
          CMT must adhere to strict criteria set out by S&P.                            due to credit, market, and/or liquidity risks.

                                                                                        Fund provides very strong capacity to maintain principal
          Who makes investment decisions for the CMT?                        AAm        value and to limit exposure to principal losses due to
                                                                                        credit, market, and/or liquidity risks.
          MIML as the Responsible Entity for the CMT has a team of
          experts who monitor the quality of the Trust’s investments                    Fund provides strong capacity to maintain principal value
          through ongoing research and risk management procedures            Am         and to limit exposure to principal losses due to credit,
          to ensure compliance with defined investment parameters                       market, and/or liquidity risks.
          governed by the Constitution and the AAAm rating of S&P.                      Fund provides adequate capacity to maintain principal
                                                                                        stability, but adverse market conditions and/or higher
          How are investments in the CMT held and managed?                   BBBm
                                                                                        levels of redemption activity are more likely to lead to
                                                                                        a weakened capacity to limit exposure to principal loss.
          ■■   The CMT’s assets are held completely separately from
               all other Macquarie assets.                                              Fund has uncertain capacity to maintain principal stability
                                                                             Bm
                                                                                        and is vulnerable to principal losses.
          ■■   All CMT assets are held in trust solely for the benefit of
               CMT unit holders.                                                        Fund has failed in its capacity to maintain principal
                                                                             Dm
                                                                                        stability, resulting in realized or unrealized loss of principal.
          In addition, MIML has an independent credit team within its
          Funds Group that constantly monitors all counterparties with      (Source - www.standardandpoors.com.au)




                 How to contact Macquarie
                 1800 808 508
09/08




                 www.macquarie.com.au/adviser
        Macquarie Cash Management Trust
        Smart cash management solutions made simple




         CMT - Frequently Asked questions
          What is the investment criteria required to acquire and               Can Macquarie Group access the money in my CMT
          maintain AAAm rating?                                                 without my authority?
          Cash management trusts achieving the AAAm rating have                 No, your CMT is held in trust for you, and is held separately
          to satisfy robust criteria including:                                 to the assets of the Macquarie Group. If the Macquarie
                                                                                Group was to need additional funds to operate its businesses,
             –■   Underlying investments must have the highest ratings
                                                                                it could NOT access your CMT to do so.
                  from Standard & Poor’s (minimum 75% rating of A1+
                  and a maximum of 25% A1),                                     It’s important that you understand that your money is
                                                                                diversified across a number of government securities and
             –■   The Trust must have a very low sensitivity to interest-rate
                                                                                bank securities and deposits.
                  risks with a weighted average maturity limited to
                  a maximum of 70 days, and
                                                                                If Macquarie defaulted, what would happen to my CMT?
             –■   Detailed information on the Trust’s holdings must be
                                                                                The Macquarie CMT is managed and held separately to all
                  submitted regularly to Standard & Poor’s dedicated
                                                                                other Macquarie Group assets and therefore in the unlikely
                  surveillance analysts.
                                                                                event that the Macquarie Group needed additional funds to
                                                                                operate it could NOT access the CMT to do so. The funds
          Security and the Macquarie CMT                                        in the CMT are held in a trust, as such you are not investing
                                                                                directly with Macquarie Bank Limited. In addition, the CMT’s
          How does the Macquarie CMT manage its investments
                                                                                investment are well diversified across a number of government
          to deliver security?
                                                                                securities and bank securities and deposits.
          The principle objective of the Macquarie CMT is to preserve
          capital. This is reflected in the CMT’s Constitution, which           The CMT and diversification
          puts parameters around both choice of investments and the
          maturity length of those investments.                                 How does the Macquarie CMT ensure diversification?
          The investment decisions of the CMT are governed by the               The Macquarie CMT has strict limits that must be met to
          CMT Constitution, which sets out the Responsible Entity’s             comply with its Constitution and to maintain its AAAm rating.
          powers and duties. In addition, in order to maintain the              These limits are:
          S&P AAAm rating (the highest rating available to a cash               ■■   Maximum 25% exposure to any one A1 bank backed paper.
          management trust), the CMT must adhere to rigorous
          and precise criteria.
                                                                                ■■   Maximum of 33% to any one A1+ bank issuer. This can
                                                                                     increase to 50% for A1+ banks, where the excess relates
          What does the AAAm rating mean to the security                             to overnight deposits.
          of the CMT?                                                           Plus:
          The AAAm rating reflects the CMT’s capacity to maintain               ■■   A minimum of 10% of the investments maturing within 7 days.
          principal stability and to limit exposure to principal losses         ■■   A maximum weighted average maturity of 70 days.
          due to credit market and/or liquidity risks. The AAAm rating
                                                                                ■■   A maximum term of any individual investment of 12 months.
          also reflects the quality of the underlying investments.
          To maintain the AAAm rating, detailed information on the              The CMT and Liquidity
          CMT’s holdings must be submitted every week to Standard
          & Poor’s dedicated surveillance analysts.                             Does the AAAm rating offer a high degree of liquidity to
                                                                                CMT investors?
          Does the CMT invest in Macquarie Bank Limited?                        Yes as the AAAm criteria stipulated that the Trust must have
          As Macquarie Bank Limited is currently rated A1 by Standard           a very low sensitivity to interest-rate risks with a weighted
          and Poor’s, the CMT could invest up to of 25% of its portfolio        average maturity limited to a maximum of 70 days. To ensure
          into Macquarie Bank Limited. Currently, the CMT invests               compliance, detailed information on the fund’s holdings must
          around 12% of the portfolio with Macquarie.                           be submitted every week to Standard & Poor’s dedicated
                                                                                surveillance analysts.




                  How to contact Macquarie
                  1800 808 508
09/08




                  www.macquarie.com.au/adviser
        Macquarie Cash Management Trust
        Smart cash management solutions made simple




         Glossary
           Bank backed securities                           A security provided by a bank whose payment is the responsibility of the issuer.


           Bank bill                                        A bill of exchange of which the acceptor or endorser is a bank.

                                                            The written document lodged with the Australian Securities and Investments Commission
           Constitution
                                                            (ASIC) which governs the operation of the Macquarie CMT.

           Counterparty                                     A party with whom Macquarie has an agreement to trade securities.


           Unit                                             A share in the assets of a managed investment scheme.

                                                            An authorised Deposit-taking Institution (ADI). All Australian banks, including Macquarie Bank,
           Bank (Australian)
                                                            CBA, Westpac, etc are ADIs.
           ADI                                              Corporations which are authorised under the Banking Act 1959. ADIs include banks, building
           (Authorised Deposit-taking                       societies and credit unions. All ADIs are subject to the same Prudential Standards but the use
           Institutions)                                    of the names ‘bank’, ‘building society’ and ‘credit union’ is subject to corporations meeting
                                                            certain criteria. (Source APRA).

           The regulator                                    Banking in Australia is highly regulated. The governing body is the Australian Prudential
                                                            Regulation Authority (APRA). APRA has strict guidelines covering issues such as how much
                                                            liquid cash banks must hold, how and when they can lend money to other parts of their
                                                            businesses and limits on large exposures. APRA undertakes an annual review of EVERY bank
                                                            in Australia, including Macquarie.




          This information is provided for the use of licensed financial advisers only. In no circumstances is it to be used by a person for the purposes of making a decision about a financial product
          or class of financial products. Macquarie Investment Management Limited (MIML) is not an authorised deposit-taking institution for the purposes of the Banking Act (Cth) 1959, and MIML’s
          obligations do not represent deposits or other liabilities of Macquarie Bank Limited ABN 46 008 583 542. Macquarie Bank Limited does not guarantee or otherwise provide assurance in
          respect of the obligations of MIML.




                  How to contact Macquarie
                  1800 808 508
09/08




                  www.macquarie.com.au/adviser

								
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